Mortgage Expert
Current APR: 6.70%
Best For: One-time expenses like home improvements or big purchases
Key Benefit: Predictable monthly payments
Current APR: 9.50%
Best For: Ongoing expenses such as tuition or medical bills
Key Benefit: Flexibility to borrow as needed
No Down Payment Required:
Home equity loans do not require a down payment since the equity in the home serves as collateral
Loan-to-Value Ratio:
It is recommended to keep the loan-to-value ratio under 90% of the available equity to ensure financial safety.
Application Process:
The loan application process typically takes about two weeks if no appraisal is needed; otherwise, it may take up to four weeks.
Closing Location:
Loans close at the branch office, with lenders assisting in scheduling the closing
A home equity loan allows you to borrow against the value you've built up in your home over time. It’s typically issued as a lump sum with a fixed interest rate, making it a popular choice for homeowners who need a predictable monthly payment. At Home Equity Alliance, we ensure that you understand all your options before making any decisions.
Lower Interest Rates: Home equity loans usually have lower interest rates compared to personal loans or credit cards.
Lump Sum Payment: Receive the full loan amount upfront, which can be beneficial for large projects or major expenses.
Fixed Repayment Terms: Enjoy the security of fixed monthly payments, making it easier to budget for the long term.
Not sure whether a home equity loan or a home equity line of credit (HELOC) is the better option? Home equity loans provide a lump sum with fixed rates, while HELOCs offer more flexibility with variable rates and revolving credit lines. We’ll help you determine which option aligns best with your financial goals.
How to Get the Best Home Equity Loan Rates?
Home Equity Loan Requirements: What You Need to Know
Fixed-Rate vs. Variable-Rate Home Equity Loans
Using a Home Equity Loan Calculator to Plan Your Finances
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Mortgage Expert
"Loved everything so far"
"Home Equity Alliance made the process of securing a home equity loan so easy. Kyle and his team walked me through every step and answered all of my questions. Their expertise in the Denver market was invaluable, and I couldn’t be happier with the outcome. I was able to use my loan to remodel my kitchen, adding significant value to my home. I highly recommend them!"
— Sarah L., Denver, CO
"My life changed forever"
"Working with Kyle and Home Equity Alliance was a game-changer for me. They helped me consolidate my high-interest debt using a home equity loan, saving me hundreds of dollars every month. The team was professional, patient, and committed to finding the best solution for my needs. If you’re considering a home equity loan, this is the place to go."
- David R. Boulder, CO
"Highly recommend this"
"Kyle and his team at Home Equity Alliance provided exceptional service from start to finish. They explained everything clearly and made sure I understood my options. Thanks to their guidance, I was able to secure a loan that allowed me to cover my daughter’s college tuition. I’m so grateful for their expertise and support!"
- Lisa M. Aurora, CO
some core FAQ questions
regarding
Home Equity Loan
A home equity loan allows homeowners to borrow money using the equity they have built in their property as collateral. The loan is typically issued as a lump sum and is repaid over a fixed term with regular monthly payments.
Home equity loans are secured by your home, meaning that if you fail to make payments, you risk foreclosure. Lenders usually require borrowers to have at least 15% to 20% equity in their homes, along with good credit scores and a low debt-to-income ratio. The amount you can borrow is generally capped at 80% of your home equity.
Funds from a home equity loan can be used for various purposes, including home renovations, debt consolidation, education expenses, medical bills, or even purchasing a vehicle. Essentially, the money can be used at the borrower's discretion.
No, home equity loans do not require a down payment since the loan is secured by the equity in your home. However, there may be closing costs and other fees associated with the loan.
The application process can vary. If no appraisal is required, it typically takes about two weeks. If an appraisal is needed, it may take up to four weeks. Your lender will keep you updated throughout the process.
The primary risk is that since the loan is secured by your home, failing to make payments can lead to foreclosure. Additionally, if property values decline, you may owe more than your home is worth.
In many cases, yes. The interest paid on a home equity loan may be tax-deductible, but it’s advisable to consult with a tax professional to understand how it applies to your specific situation.ShareRewrite
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